Demographic changes mean a big collapse is unlikely, but if a buyers' strike develops in anticipation of falling prices, lenders could face tough times The shares look likely to drift lower. Renishaw Renishaw produces equipment to measure distances to within one millionth of an inch, used in the making of cars, artificial hips and teeth moulds and for restoring Old Masters. Its shares are 53 per cent owned by Renishaw's founders, making them illiquid and poorly-researched by the City. New investors searching this sector will find high-yield bargains elsewhere, but existing shareholders should hold on. MFI Furniture The bedrock of MFI Furniture's recent growth has been a push into "all rooms in the house" taking it into bathrooms and sofas as well as bedrooms and kitchens.
A stylish makeover for 200 stores has also sprinkled fairy dust on the figures, and only two thirds of the estate has been overhauled so far. Long-standing investors might like to take some of their profits, but more recent converts should hold on. Capita The love affair between the stock market and Capita Group, operator of London's congestion charge, has been through a bad patch, but there was kissing and making up after its interim results this week. Capita collects your TV licence, pays teachers' pensions, perhaps sends your council tax bill, looks after criminal records and may deal with your insurance claim.
The business opportunities continue to be large and the general trend for outsourcing administrative functions looks set to continue Good value.. Undiscovered gems in the stock market have the potential to deliver double-whammy gains to investors who spot talent before the crowds. Such companies are the stock market equivalent of Ben Curtis, the 500-to-one golf champion who emerged from obscurity to clinch the Open last week. If it maintains present form, its shares are likely to benefit from the double boost of rising earnings as well as a upward revaluation in its shares. That could be richly rewarding for investors over the long term.As its name implies, SCS is a retailer of sofas. From its base in Sunderland, Tyne and Wear, the group has grown rapidly by opening stores and winning market share in a highly fragmented industry. Most of its rivals are small, family-run businesses that are slowly being squeezed out by better-funded chains with economies of scale.Although SCS faces competition from major rivals such as DFS Furniture, IKEA, MFI and Marks & Spencer, there is considerable room for growth.
The group still claims only a 4 per cent share of the upholstery market from a network of 53 stores with an average selling space of about 13,000sq ft. The goal is to increase the chain to 70 stores by the end of next year, which should position it as a truly nationwide retailer.Importantly, the group does not manufacture the sofas. It sources them from a range of sub-contractors around the country. But what catches the eye most is the quality of the group's earnings. These have grown at an annual 25 per cent over the past five years, and pre-tax profits have almost tripled from £3.3m in 1998 to £9.75m for the year ended September, 2002.